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Rise of the Machines

Booming labor rates and high attrition levels are pushing sourcing managers to focus on technology to replace labor

Potential to cut down labor costs by about 27% in security services by replacing a guard with a robot

Securitas, ISS, Allied Universal have partnered with OEMs such as Knightscope for robot development and deployment

Challenges include privacy concerns, malfunctions due to software glitches or facial recognition snags

Dear reader,
is Facilities Management ready for the robot invasion?

Your Procurement colleagues from 2,600+ companies are
already on the discussion forum

5 frequently overlooked

catering services costs you should put a cap on

Liability insurance -

Cap it at 0.5 percent of total cost

Protects business from the risk of being sued and held legally liable for something such as malpractice, injury or negligence

Workers’ compensation insurance -

Cap it at 5 to 6 percent of payroll costs

Offers compensation
for injuries or

Management fees -

Cap it at 2 to 3 percent of operating costs

Includes payroll processing
fees and burden recovery
charges as well

compensation -

Cap it at 2 to 3.5 percent of payroll costs

Funds paid to unemployed
workers who have lost
their jobs due to layoffs or

Central management team expenses -

Cap it at 2 percent of the total operating costs

Used in cases where the contracted supplier
manages multiple sites/ locations

The Impact on your FM Contract!

Hello FM Procurement:
it’s time to hunt for FM deals
as retailers go online!

Over 50 million square feet of vacant retail space has opened up following shutting down of nearly 6,000 brick-and-mortars in the last 18 months

Closures include shopping malls, Exclusive Brand Outlets (EBOs), and several Multi-Brand Retail Outlets (MBOs), warehouses, bank branches, factories
and so on

Online retail growth is significantly higher than offline

With all of the above, we expect the demand for FM services in the retail
sector to drop

This gives FM buyers the upper hand as the Industrial & Commercial sectors will become more attractive

From an overall FM spend viewpoint, square feet cost per employee is expected to gradually go south

In addition, new age work practices such as co-working spaces and work-from-home options will also have an impact on occupancy rates

The timing is perfect for companies that want to experiment with innovative, collaborative and vibrant workspaces to move into prime real estate properties that are falling vacant

REFM buyers should:

Track absorption and vacancy rates in the local market

Gauge stakeholder’s REFM requirements

Collaborate with FM & IT partners to support technology and security requirements for new age workspaces


When do you see BOTs
dominating the world
Facilities Management?

  • Within two years

  • In the next five years

  • It will be a while before they do

  • They never will

Supplier Risk

Three risky facilities management suppliers